Back
Federal Reserve Ends Special Oversight Program for Banks’ Crypto Operations

Federal Reserve Ends Special Oversight Program for Banks’ Crypto Operations

The U.S. Federal Reserve has ended its Novel Activities Supervision Program, reflecting a broader regulatory shift that allows banks greater autonomy in cryptocurrency activities under existing risk management standards.

Fact Check
Multiple press releases from the Federal Reserve Board dated April 24, 2025, explicitly state the withdrawal of guidance and the rescission of the 2023 supervisory letter that created the special oversight program (the Novel Activities Supervision Program). The documents confirm that supervision of banks' crypto-asset activities will revert to the 'normal supervisory process'.
Summary

The Federal Reserve has terminated its Novel Activities Supervision Program, introduced in 2023 to heighten oversight of banks’ cryptocurrency and fintech operations. This move follows the April removal of guidelines requiring banks to seek regulatory approval before starting new crypto activities. The Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation have taken similar steps, permitting banks to pursue crypto-related business under established risk management protocols. Analysts view this as part of a wider easing of cryptocurrency regulations in the United States.

Terms & Concepts
  • Stablecoin: A cryptocurrency designed to maintain a stable value by being pegged to a reserve asset like a fiat currency or commodity.
  • Crypto Asset Custody: A service where financial institutions hold and safeguard digital assets like cryptocurrencies on behalf of clients.